New home sales were at a seasonally adjusted annualized rate of 863,000 homes in April, the US Department of Commerce said on Tuesday. March sales were revised downward from 1,021,000 units to 917,000 units.
The market consensus called for an increase in sales to 970,000 units in April.
On an annual basis, new home sales are up 48.3% from the estimate of 582,000 units last year.
Gold rose after the data was released, moving into positive territory. June Comex gold futures were last at $ 1,895, up more than 0.5% on the day.
Looking at home prices, the report says the median selling price of homes sold last month was $ 372,400 while the average price was $ 435,400.
The inventory of homes for sale at the end of April stood at 316,000, a supply of 4.4 months at the current sales rate.
CIBC Capital Markets economists Katherine Judge and Andrew Grantham pointed out that the monthly drop in new home sales could be attributed to a shortage of building materials.
“The decline likely reflects persistent land and building material shortages that have forced builders to slow construction, in line with the slowing pace of single-family housing starts that also took place in April. Months of supply fell to 4.4, still meager, ”they said after the data was released.
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